Pakistan’s sugar price is on the rise as it’s set to produce 200k tonnes less sugar than it needs to satisfy its 5.3m tonne domestic demand.
- 350k tonnes of raws and 500k of refined sugar imports will be allowed duty free to curb the rally, even though it’s midway through its cane harvest.
- The last time Pakistan imported raw sugar was in 2010 for 54k Indian raws and 2006 for 43k tonnes of Brazilian raw sugar.
- The previous import program of 300k tonnes of white sugar during 2H’20 was during the off-crop season.
- The Punjab Government has blamed Pakistan’s sugar mills for hoarding sugar in an effort to artificially increase prices
- The mills have countered these claims, citing sugar smuggling at the Pakistan-Afghanistan border as the real reason and also blamed farmers for withholding sugarcane supply.
- There are also rumours that the crop might be below 5m tonnes which may have fuelled some speculative action on the market.
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